No it does not, the people of the book (Jews and Christians) originally were believers. There are those who believed and those who disbelieved. Those who believed are the ones who have no fear or sadness and will have their reward.
إِنَّ ٱلَّذِينَ ءَامَنُواْ وَٱلَّذِينَ هَادُواْ وَٱلنَّصَـٰرَىٰ
وَٱلصَّـٰبِـِٔينَ مَنۡ ءَامَنَ بِٱللَّهِ وَٱلۡيَوۡمِ ٱلۡأَخِرِ
وَعَمِلَ صَـٰلِحً۬ا فَلَهُمۡ أَجۡرُهُمۡ عِندَ رَبِّهِمۡ وَلَا خَوۡفٌ
عَلَيۡہِمۡ وَلَا هُمۡ يَحۡزَنُونَ (٦٢)
Those who believe (in the Qur'an) and those who follow the Jewish
(Scriptures) and the Christians and the Sabians, any who believe in
Allah and the Last Day and work righteousness, shall have their reward
with their Lord; on them shall be no fear, nor shall they grieve. (62)
Surah Bakarah Ayah 62
But those who disbelieve as Allah has said in Surah Al Baiynah Ayah 6 are the worst of creatures:
إِنَّ ٱلَّذِينَ كَفَرُواْ مِنۡ أَهۡلِ ٱلۡكِتَـٰبِ وَٱلۡمُشۡرِكِينَ
فِى نَارِ جَهَنَّمَ خَـٰلِدِينَ فِيہَآۚ أُوْلَـٰٓٮِٕكَ هُمۡ شَرُّ
ٱلۡبَرِيَّةِ (٦)
Those who reject (Truth), among the People of the Book and among the
Polytheists, will be in Hell-fire, to dwell therein (for aye). They
are the worst of creatures. (6)